Knight Capital Implosion: The Latest Wall Street Alarm Bell That Everyone Will Ignore [1]

YAHOO! FINANCE

By Henry Blodget [2] | Daily Ticker [3] – Mon, Aug 6, 2012 10:12 AM EDT

Wall Street's latest disaster is the trading firm Knight Capital (KCG [4]), which somehow managed to lose hundreds of millions of dollars in a half hour last week from a "software glitch"--a capital loss that almost destroyed it.

Knight has now received an emergency investment of $400 million from a group of investors including TD Ameritrade, Blackstone Group and Chicago-based Getgo [5]. These new investors will own 70 percent of Knight Capital.

To read the rest of this story and see the video, visit Finance.Yahoo.com. [6]